Gold rises to over 4-month high of Rs29,440 on seasonal demand

New Delhi: Gold prices gained Rs 100 to touch over four-and-a-half-month high of Rs 29,440 in the bullion market here on Friday on strong buying by stockists and retailers to meet the wedding season demand.

The precious metal, which was last seen at this level on December 5, has gained 450 in the last six-sessions. The price of silver also rose by 400 to Rs 56,400 per kg on increased offtake by industrial units and coin makers, ending three-day losing streak.

Traders said besides buying by stockists and retailers for the ongoing wedding season, a firming trend in overseas markets also aided the sentiment.

Trading sentiment remained bullish as gold rose the most in two weeks in global markets on speculation that the Federal Reserve may increase stimulus measures to bolster the US economy, they said.

In New York, gold shot up by USD 12.80 an ounce and silver by 1.24 percent to USD 31.09 an ounce.

On the domestic front, gold of 99.9 and 99.5 percent purity added Rs 100 each to Rs 29,440 and Rs 29,300 per 10 grams, respectively.

Sovereigns remained steady at Rs 23,650 per piece of eight grams.

Silver ready recovered by Rs 400 to Rs 56,400 per kg and weekly-based delivery by Rs 385 to Rs 55,730 per kg. Silver coins also spurted by Rs 1,000 to Rs 65,000 for buying and Rs 66,000 for selling of 100 pieces.